Business Standard

Securitisa­tion volumes of NBFCS and HFCS up 65% YOY in 2nd qtr


Non-banking financial companies and housing finance firms sold loans worth ~25,000 crore through securitisa­tion and direct assignment in the second quarter (Q2) of 2021-22 (FY22) - a 65 per cent rise over the same period last year. Sequential­ly, the volume of activity was 45 per cent over ~17,200 crore in the April-june quarter (first quarter, or Q1) of FY22. Reflecting ebbing investor concerns around collection­s, the share of direct assignment­s kicked into normal mode at two-thirds of volumes in Q2FY22, from 50 per cent in Q1FY22, revealed ICRA. The split between securitisa­tion and direct assignment had seen a reversal of sorts in Q1FY22, with pass-through certificat­es (PTCS) accounting for half the volumes, instead of one-third. Investors preferred PTCS, offering credit enhancemen­t unlike direct assignment­s, which involve bilateral assignment of pools from one entity to another.

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